Earnings Update: Nestle Nigeria Q3 2024 – Upgraded Revenue Forecast and Positive Stock Outlook Despite Ongoing Challenges

Event

Nestlé Nigeria Plc (“the Group”) delivered an exceptional performance in Q3 2024, with revenue soaring by 92% to N258.32 billion, compared to N134.82 billion in Q3 2023. This remarkable growth was largely driven by a substantial 86% increase in the food division and a striking 103% surge in the beverage segment. According to the Management, volume growth and price increases drove this performance.

Outlook

Driven by sustained volume growth and higher pricing, we have revised our revenue forecast for FY 2024 to N994.08 billion, up from the previous estimate of N794.47 billion. This reflects the Group’s strong market performance despite broader economic challenges. However, we expect that escalating input costs, rising operational expenses, and persistent exchange rate fluctuations will continue to put pressure on profitability, leading to a net loss for the rest of the year. This highlights the ongoing challenges in managing costs and external factors that could offset the positive revenue growth.

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